Having been pursued, unsuccessfully, many times by his father in previous years, today Senator Rand Paul, together with Rep. Thomas Massie re-introduced legislation to “Audit the Fed”, after a similar effort stalled in the last Congress.
While in the past such a proposal, which has been vocally opposed by Janet Yellen and Wall Street for obvious reasons, was quietly shut down it may face its best odds ever of becoming law in the current Congress according to the Hill. With both chambers controlled by Republicans long critical of Fed’s policies, the legislation could end up being a test of Donald Trump stated resolve to putting the Fed to heel. In the past, the president elect has heaped scorn on the central bank, and demanded accountability from the “independent” Fed.
To that end, Paul specifically mentioned Trump in a statement about the bill Wednesday, making clear the measure’s proponents believe they have an ally in their cause coming to the White House.
“The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress,” said Paul.
Under the proposed bill, the Fed’s monetary policy deliberations could be subject to outside review by the Government Accountability Office. Proponents of the measure argue that the Fed is too powerful and lacks sufficient oversight for its interest rate decisions. But Fed officials from Yellen on down, as well as other critics, have warned that such a policy could subject the Fed to undue political pressure and discourage it from taking unpopular steps for the good of the overall economy.
While in the past, the proposal garnered bipartisan support and has passed the House several times in past Congresses, it usually stalled in the Senate. Senate Democrats refused to bring up the bill for consideration when they controlled the chamber, and senators rejected the bill in 2016 after it was brought up by the new GOP majority.
Two non-Republican senators — Bernie Sanders (I-Vt.) and Tammy Baldwin (D-Wis.) — voted for the measure then. Only one Republican, Sen. Bob Corker (Tenn.), opposed it. But the situation is different in 2017, as lawmakers who assumed President Obama would veto any “Audit the Fed” legislation in the past now are anticipating a White House with a vocal Fed critic at the helm. Furthermore, with Republicans controlling both chambers, any attempts to kill the bill will be more complicated.
During his presidential campaign, Trump frequently singled out the Fed, arguing during presidential debates that the institution was deliberately keeping interest rates low for Obama’s political benefit.
Fed officials are fiercely protective of their reputation as pursuing policies free of political motivation, and Yellen has shot down any notion of partisan intent in its policymaking. But lawmakers hoping to overhaul how the Fed does business see an opening in 2017.
“It is time to force the Federal Reserve to operate by the same standards of transparency and accountability to the taxpayers that we should demand of all government agencies,” said Massie.
Skeptics, however, note with Trump surrounding himself by numerous Wall Street scions in his new administration, and with the Fed an entity owned mostly by Wall Street (as Ben Bernanke’s former advisor infamous suggested last year when he said that “People Would Be Stunned To Know The Extent To Which The Fed Is Privately Owned“) it remains unlikely that any true change to the operational nature of the Fed will be implemented, especially if it gives Congress an upper hand over Wall Street in what to many is the most important decision-making process in the nation: setting the price of the money in general, and the US dollar in particular.
Ron Paul Statement On “Audit The Fed”
by Tyler Durden
Jan 4, 2017 2:38 PM
Campaign for Liberty Chairman Ron Paul issued the following statement regarding the introduction of the Audit the Fed bill in the Senate by Senator Rand Paul (KY) and in the House by Representatives by Thomas Massie (KY-04):
Ron Paul Statement on Audit the Fed
I applaud my son Senator Rand Paul and my friend Representative Thomas Massie for their leadership on the important issue of auditing the Federal Reserve. Audit the Fed is the type of change the American people demanded when they went to the polls last November.
For 105 years, the Federal Reserve has exercised almost absolute and unquestioned authority over America’s monetary policy. The result has been a boom-and-bust business cycle, growth in government, increasing income inequality, and a loss of over 90% of the dollar’s purchasing power. No wonder almost 80% of Americans support Audit the Fed!
While campaigning for President, Donald Trump not only criticized the Fed’s easy money policies, he also endorsed Audit the Fed. With a President who supports Audit the Fed finally sitting in the White House, Congress has no excuse to not quickly pass this bill and finally let the American people know the truth about the Fed’s conduct on monetary policy, including its dealings with foreign governments and central banks.
My Campaign for Liberty is going to mobilize a pro-Audit the Fed majority to make 2017 the year when the Fed’s wall of secrecy is finally torn down.
Well, now we may be getting somewhere. I am not going to get my hopes up because even if the Fed is “audited” that is not the same as shutting it down, however sometimes a little sunlight is the first thing necessary in the process. Hoping for the best, but expecting the worst on this one. We shall see, BTW, this may also give us a true barometer on whether Trump is just a show, or has some real meat.
Sorry. But I’ve learned having watched this dog & pony show over the last 50 years that a substantial majority of our “elected representatives” are bought and paid for and/or subject to blackmail by the powerful interests that stand behind this private banking cartel. It’s never gonna happen.
Good fuckin’ luck. Will be interesting to see if Trump supports it now that he’s won the election.
Why bother? Just fucking end the fed and quit dickin’ around.
End the FED and maybe America’s middle class survives.Keep it as is, we know how that story ends.
The Fed sent out for the 2000 dollar pizzas (real) with the 24k gold flakes topping to celebrate the Goldman takeover.
I put the chances of the cartel allowing a real audit at less than zero unless they are ready to pull the pin to collapse this dog and pony show.
Audit the Fed Bill Coming Up, Trump Will Likely Sign
Posted by Mish
Last year, Senate democrats twice defeated House sponsored legislation to audit the Fed. It’s likely to pass this year, and Trump is likely to sign.
The Hill reports ‘Audit the Fed’ Bill Gets New Push Under Trump.
“Controversial legislation to subject the Federal Reserve’s monetary policy powers to outside scrutiny is getting new life in Washington.
Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.) have re-introduced legislation to “Audit the Fed,” after a similar effort stalled in the last Congress.
“The U.S. House has responded to the American people by passing Audit the Fed multiple times, and President-elect Trump has stated his support for an audit. Let’s send him the bill this Congress,” said Paul.
Under the bill, the Fed’s monetary policy deliberations could be subject to outside review by the Government Accountability Office.
“It is time to force the Federal Reserve to operate by the same standards of transparency and accountability to the taxpayers that we should demand of all government agencies,” said Massie.”
End the Fed
Auditing the Fed is only a baby step. We need to end the Fed, end fractional reserve lending, and have a free market in currencies and interest rates.